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Thursday, 30 June 16
OIL PRODUCT TANKERS EARNINGS DECLINE AS STOCKBUILDING SLOWS DOWN - BIMCO
 BIMCO’s expectations remain as the oil product tanker fleet continues to grow with earnings at the lowest since Q3 in 2014. But there is still money to be made in the second half of 2016.
The oil product tanker market has reached a net fleet growth of 4.3m DWT so far in 2016. That is well in line with BIMCO’s full estimate of 8.5m DWT for the full year 2016. The main drivers of the total growth continue to be the MRs and LR2s.
With a net fleet growth of 5.8 % in 2015, the oil product tankers are looking to continue the trend of elevated supply growth with 3.0 % growth so far in 2016 – for the full year BIMCO expects 6.0 %.
Chief Analyst Peter Sand comments: “The LR2s and MRs are the leading segments for fleet growth in the oil product tanker market – in percentage as well as DWT in 2014 and 2015. This trend continues into the first half of 2016. Based on the current and anticipated new orders, BIMCO expects the net fleet growth in 2016 to be around the same level as in 2015 and likely to come down in 2017.
The earnings have been in decline since the beginning of 2016 and are actually at the lowest since Q3 in 2014. The reason for the decline is a combination of fleet growth alongside the deceleration of oil product stock building that was seen at the end of 2015 and early 2016. This is diminishing demand growth. While oil product production has been running ahead of end consumption, oil product tanker demand has risen above trend”.
Earnings decreasing into Q2 2016
All four oil product tanker segments have experienced an overall decline in earnings in 2016, with the LR2 seeing a 54 % decline from USD 33,966 per day from 1 January 2016 to USD 15,703 per day on 24 June 2016.
Peter Sand adds: “Due to our expectations that the freight rates would decline, we recommended back in January to fix some capacity on longer timecharters for companies with a high exposure to the spot market. We still see this need. As the spot rates are declining it is important to manage your risk and exposure to the market, as earnings could drop even further”.
Despite the demand side growing more than anticipated, the inflow of new tonnage has affected the freight market fundamentals and led to the present earnings.
Demand and supply for global oil is set to even out in Q3.
The demand growth for global oil according to The International Energy Agency (IEA) is up by 1.4 million barrels per day (mb/d) year on year for Q1 2016, compared to the previous expected 1.2 mb/d. Furthermore, they expect the demand and supply for global oil to be in balance in Q3 2016.
Peter Sand comments: “This balance puts an overhanging risk onto the global oil stockbuilding, which we have seen being built up on a large scale since mid-2014. When the global oil supply no longer outstrips global oil demand and the refineries cannot take advantage of the low and volatile crude oil prices, they do not contribute to further stockbuilding.
The increase in global oil demand and eventual levelling out over supply of oil means we will stop building stocks. We may even begin to draw down on the swollen stocks. This in turn presents an outside risk to the oil product tanker market. However, we could also see the new stock levels become permanent and so the tanker demand will not be affected in this way. Only time will tell how the dynamics will play out”.
Source: BIMCO
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Friday, 27 May 16
PET-COKE IMPORTS TO FACE PRESSURE IN INDIA
COALspot.com: An Indian environmental activist moved the National Green Tribunal seeking ban on the use of all forms of petroleum coke, also called ...
Friday, 27 May 16
US COAL PRODUCTION ROSE 2.9% WOW, ACCORDING TO EIA
COALspot.com – U.S the world’s second largest coal producer has produced approximately totaled an estimated 11.7 million short tons (mm ...
Thursday, 26 May 16
GIANT ORE CARRIERS SET TO PLAY A BIGGER ROLE IN THE GLOBAL SHIPPING FLEET: CHINA EMBRACES VALEMAXES - RICHARD SCOTT
Another phase of the giant ships era is approaching. Chinese shipowners placed orders recently for 30 huge ‘valemax’ ore carriers. Thes ...
Wednesday, 25 May 16
MEDIATION AS A WAY TO RESOLVE DISPUTES IN THE SHIPPING INDUSTRY - LANA JACOBS
KNOWLEDGE TO ELEVATE
The shipping market is currently experiencing a serious recession with the Baltic Dry Index and Baltic Capesize Index bot ...
Wednesday, 25 May 16
DRY BULK SNP MARKET DISPLAYS SIGNS OF STRENGTH - GEORGE ILIOPOULOS
Only a couple of weeks away from the world’s most prominent maritime event, the market for tankers displays an evident lack of confidence in ...
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Showing 2416 to 2420 news of total 6871 |
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- Cigading International Bulk Terminal - Indonesia
- Oldendorff Carriers - Singapore
- Kohat Cement Company Ltd. - Pakistan
- IHS Mccloskey Coal Group - USA
- Directorate General of MIneral and Coal - Indonesia
- Manunggal Multi Energi - Indonesia
- Georgia Ports Authority, United States
- White Energy Company Limited
- Asia Pacific Energy Resources Ventures Inc, Philippines
- Barasentosa Lestari - Indonesia
- ASAPP Information Group - India
- Neyveli Lignite Corporation Ltd, - India
- Standard Chartered Bank - UAE
- Sree Jayajothi Cements Limited - India
- Intertek Mineral Services - Indonesia
- Ind-Barath Power Infra Limited - India
- Aditya Birla Group - India
- The Treasury - Australian Government
- Ministry of Finance - Indonesia
- Vijayanagar Sugar Pvt Ltd - India
- Economic Council, Georgia
- Energy Development Corp, Philippines
- PNOC Exploration Corporation - Philippines
- Miang Besar Coal Terminal - Indonesia
- Central Java Power - Indonesia
- Savvy Resources Ltd - HongKong
- Mercator Lines Limited - India
- Heidelberg Cement - Germany
- GVK Power & Infra Limited - India
- Directorate Of Revenue Intelligence - India
- CIMB Investment Bank - Malaysia
- Gujarat Mineral Development Corp Ltd - India
- The State Trading Corporation of India Ltd
- Bukit Asam (Persero) Tbk - Indonesia
- Lanco Infratech Ltd - India
- Pendopo Energi Batubara - Indonesia
- Kartika Selabumi Mining - Indonesia
- Australian Coal Association
- San Jose City I Power Corp, Philippines
- Wood Mackenzie - Singapore
- Minerals Council of Australia
- MS Steel International - UAE
- Thiess Contractors Indonesia
- Larsen & Toubro Limited - India
- Bharathi Cement Corporation - India
- IEA Clean Coal Centre - UK
- Eastern Energy - Thailand
- Global Green Power PLC Corporation, Philippines
- Attock Cement Pakistan Limited
- Madhucon Powers Ltd - India
- Central Electricity Authority - India
- Indika Energy - Indonesia
- Trasteel International SA, Italy
- Makarim & Taira - Indonesia
- Billiton Holdings Pty Ltd - Australia
- Energy Link Ltd, New Zealand
- Dong Bac Coal Mineral Investment Coporation - Vietnam
- Deloitte Consulting - India
- ICICI Bank Limited - India
- PowerSource Philippines DevCo
- Rashtriya Ispat Nigam Limited - India
- VISA Power Limited - India
- Bank of Tokyo Mitsubishi UFJ Ltd
- AsiaOL BioFuels Corp., Philippines
- India Bulls Power Limited - India
- Binh Thuan Hamico - Vietnam
- Bahari Cakrawala Sebuku - Indonesia
- Sarangani Energy Corporation, Philippines
- Bhushan Steel Limited - India
- Leighton Contractors Pty Ltd - Australia
- Parry Sugars Refinery, India
- Semirara Mining Corp, Philippines
- Samtan Co., Ltd - South Korea
- Jindal Steel & Power Ltd - India
- Altura Mining Limited, Indonesia
- Grasim Industreis Ltd - India
- SMC Global Power, Philippines
- Power Finance Corporation Ltd., India
- SN Aboitiz Power Inc, Philippines
- TNB Fuel Sdn Bhd - Malaysia
- Merrill Lynch Commodities Europe
- Gujarat Electricity Regulatory Commission - India
- LBH Netherlands Bv - Netherlands
- Bangladesh Power Developement Board
- Sakthi Sugars Limited - India
- Timah Investasi Mineral - Indoneisa
- South Luzon Thermal Energy Corporation
- Baramulti Group, Indonesia
- Meenaskhi Energy Private Limited - India
- Riau Bara Harum - Indonesia
- Tamil Nadu electricity Board
- Ministry of Mines - Canada
- Tata Chemicals Ltd - India
- Romanian Commodities Exchange
- Borneo Indobara - Indonesia
- Kumho Petrochemical, South Korea
- SMG Consultants - Indonesia
- Anglo American - United Kingdom
- Formosa Plastics Group - Taiwan
- Holcim Trading Pte Ltd - Singapore
- Bayan Resources Tbk. - Indonesia
- GN Power Mariveles Coal Plant, Philippines
- Bukit Baiduri Energy - Indonesia
- London Commodity Brokers - England
- Dr Ramakrishna Prasad Power Pvt Ltd - India
- Sojitz Corporation - Japan
- Parliament of New Zealand
- Bhatia International Limited - India
- European Bulk Services B.V. - Netherlands
- Offshore Bulk Terminal Pte Ltd, Singapore
- TeaM Sual Corporation - Philippines
- Kapuas Tunggal Persada - Indonesia
- PTC India Limited - India
- PetroVietnam Power Coal Import and Supply Company
- Indo Tambangraya Megah - Indonesia
- Jorong Barutama Greston.PT - Indonesia
- Global Business Power Corporation, Philippines
- Posco Energy - South Korea
- Mercuria Energy - Indonesia
- Ambuja Cements Ltd - India
- Vedanta Resources Plc - India
- Orica Mining Services - Indonesia
- New Zealand Coal & Carbon
- Bukit Makmur.PT - Indonesia
- Rio Tinto Coal - Australia
- Price Waterhouse Coopers - Russia
- Edison Trading Spa - Italy
- Commonwealth Bank - Australia
- McConnell Dowell - Australia
- Electricity Authority, New Zealand
- Thai Mozambique Logistica
- Krishnapatnam Port Company Ltd. - India
- Banpu Public Company Limited - Thailand
- Xindia Steels Limited - India
- Singapore Mercantile Exchange
- Global Coal Blending Company Limited - Australia
- Karbindo Abesyapradhi - Indoneisa
- Iligan Light & Power Inc, Philippines
- Karaikal Port Pvt Ltd - India
- Chettinad Cement Corporation Ltd - India
- Planning Commission, India
- Uttam Galva Steels Limited - India
- Jaiprakash Power Ventures ltd
- Coal and Oil Company - UAE
- Alfred C Toepfer International GmbH - Germany
- Medco Energi Mining Internasional
- Indonesian Coal Mining Association
- Independent Power Producers Association of India
- Indogreen Group - Indonesia
- International Coal Ventures Pvt Ltd - India
- Gujarat Sidhee Cement - India
- Maheswari Brothers Coal Limited - India
- Sical Logistics Limited - India
- Meralco Power Generation, Philippines
- CNBM International Corporation - China
- Metalloyd Limited - United Kingdom
- Pipit Mutiara Jaya. PT, Indonesia
- Toyota Tsusho Corporation, Japan
- Mjunction Services Limited - India
- Antam Resourcindo - Indonesia
- Indian Energy Exchange, India
- Sinarmas Energy and Mining - Indonesia
- Cement Manufacturers Association - India
- Eastern Coal Council - USA
- Port Waratah Coal Services - Australia
- Videocon Industries ltd - India
- Marubeni Corporation - India
- Coalindo Energy - Indonesia
- Kalimantan Lumbung Energi - Indonesia
- Agrawal Coal Company - India
- Filglen & Citicon Mining (HK) Ltd - Hong Kong
- Ministry of Transport, Egypt
- Africa Commodities Group - South Africa
- Latin American Coal - Colombia
- Kepco SPC Power Corporation, Philippines
- OPG Power Generation Pvt Ltd - India
- Renaissance Capital - South Africa
- Interocean Group of Companies - India
- Chamber of Mines of South Africa
- Star Paper Mills Limited - India
- Carbofer General Trading SA - India
- Vizag Seaport Private Limited - India
- Electricity Generating Authority of Thailand
- Mintek Dendrill Indonesia
- Goldman Sachs - Singapore
- Bulk Trading Sa - Switzerland
- Aboitiz Power Corporation - Philippines
- Malabar Cements Ltd - India
- The University of Queensland
- Siam City Cement - Thailand
- Coastal Gujarat Power Limited - India
- Indian Oil Corporation Limited
- Salva Resources Pvt Ltd - India
- Truba Alam Manunggal Engineering.Tbk - Indonesia
- Kobexindo Tractors - Indoneisa
- Essar Steel Hazira Ltd - India
- Petron Corporation, Philippines
- Simpson Spence & Young - Indonesia
- Straits Asia Resources Limited - Singapore
- Sindya Power Generating Company Private Ltd
- Dalmia Cement Bharat India
- Globalindo Alam Lestari - Indonesia
- Semirara Mining and Power Corporation, Philippines
- GMR Energy Limited - India
- Wilmar Investment Holdings
- Siam City Cement PLC, Thailand
- Therma Luzon, Inc, Philippines
- Bhoruka Overseas - Indonesia
- Maharashtra Electricity Regulatory Commission - India
- Kideco Jaya Agung - Indonesia
- Australian Commodity Traders Exchange
- Asmin Koalindo Tuhup - Indonesia
- Kaltim Prima Coal - Indonesia
- GAC Shipping (India) Pvt Ltd
- Orica Australia Pty. Ltd.
- Ceylon Electricity Board - Sri Lanka
- Petrochimia International Co. Ltd.- Taiwan
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